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SoundExchange Reaches Agreement with 24 Webcasters
Tuesday, September 18th, 2007 at 4:00 PM - by John Martellaro
Ever since the Copyright Royalty Board raised royalty rates for Internet radio broadcasts, there has been an acrimonious debate between DiMA, which represents the Webcasters, and SoundExchange, which collects royalties for the RIAA. On Tuesday, SoundExchange reached an agreement with 24 small Webcasters that would maintain their rates at previous levels, according to Radio Online Tuesday.
The agreements came after a protracted period of discussion during which a compromise was sought in order to avoid onerous royalties that would take most Internet radio stations off the air. Recently, the National Association of Broadcasters (NAB) stepped in and tried to facilitate the discussion.
According to Radio Online, SoundExchange has inked a deal that would keep the royalty rates as they were for 24 small, but unnamed, Webcasters as they have been from 1998 until the year 2010. The deal sets royalty payments at 10 percent of gross revenue up to US$250,000.
"Its a sacrifice our members are willing to make at the request of members of Congress and in order to give the smallest webcasters below-market rates for an additional limited time," SoundExchange Executive Director John Simson said.
Just how the negotiations will go with other Webcasters remains to be seen, but the mediation by the NAB and threat of intervention by Congress seems to have broken the ice and allowed SoundExchange and a few Webcasters to come to equitable terms, at least for awhile.
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